Jim Maloway, MLA ElmwoodMay 22, 2013

Canada Pension Plan Increase

Mr. Speaker, Manitobans are concerned about their retirement and know it's time to improve their pensions.

Manitoba's Finance Minister will be meeting soon with Canada's Finance Minister and his provincial counterparts to discuss the issue of increasing the contributions and benefits to the Canada Pension Plan.

Our Manitoba NDP government has been active in the CPP negotiations, working for a meaningful increase. Our government's objective is to negotiate a significant increase.

My own preference is the same as the Canadian Labour Congress and other labour groups, to work to double the CPP as soon as possible.

To increase the CPP, seven provinces with 70 per cent of the population and the federal government, must agree to the increase. Provinces like Ontario, Québec and Manitoba have been advocating significant enhancement.

The Canada Pension Plan is the cornerstone of Canada's retirement income system. No other retirement savings vehicle provides the same advantages at so little cost.

We're pleased the Manitoba government is working with the federal government to work with the provinces to open up CPP so that Canadians can increase their savings in a low-risk environment, in a professionally administered program. We know that an modest increase in premiums can finance a significant increase in CPP benefits for all Canadians.

Today, Mr. Speaker, the CPP, at the time of retirement, pays only 25 per cent of average pre retirement income, or slightly more than $11,000 per year at best. If you add the maximum OAS/GIS to that, the two together replace a maximum of 38 per cent pre-retirement income. Most pension experts say 50 to 70 per cent is an appropriate goal. So that's a 32 per cent gap to close.

Under the current Conservative changes, if you were born after April 1st, 1958, you'll have to work two extra years to be eligible for Old Age Security.

Manitoba working people should be able to retire at full pension at age 65. Our government will continue to work hard to ensure that all Manitobans have access to true retirement security.